The Plan for Enterprises and Organisations Transition Towards IFRS is Approved by the Government of RF as Deputy Minister for Finance of RF Mr. Sergey D. Shatalov Announced at the Government Session
The Draft Law on Consolidated Financial Reporting should be submitted to the Government within the first six months of 2003 Mr Shatalov said. The draft Law will enforce IFRS transition and IFRS reports and audits in compliance with IFRS will become mandatory legislative requirement. In this regard re-training of accountants and additional training of auditors must be organized in the nearest future as the Deputy Minister said.
The Government plans to make it mandatory for holding companies and groups of companies to submit their consolidated reports in compliance with international standards starting the year 2004. At the same time every participant of a group of companies will report in compliance with Russian standards, and consolidated reports will be prepared in compliance to international standards. Full transition to IFRS is anticipated starting January 1, 2007.
As Mr Shatalov said, transition to international standards will provide a higher level of companies' transparency, which will help to attract investments and capital in the international market. First of all this refers to publicly traded companies.